Morgan Stanley Alternative Investment Partners (AIP) has been awarded approximately USD1.3 billion in commitments for Morgan Stanley Private Markets Fund V (PMF V) and certain other separate accounts.
AIP’s strategy is to combine primary funds, co-investments and secondaries in one globally diversified portfolio of private equity investments. The capital raise, which includes USD720 million for PMF V and USD580 million for related separate accounts, exceeded AIP’s initial USD1.25 billion target.
"We are very gratified by the success of our business development efforts in this challenging fund raising environment," says Jacques Chappuis (pictured), Head of AIP. “We believe that our deep experience and our unique investment approach — as well as our differentiated results — contributed to the strong demand.”
The objective of PMF V and the related separate accounts is to provide investors with superior risk-adjusted returns while providing exposure to three main private equity strategies globally — buyouts, venture capital and special situations. AIP’s investment strategy emphasises less efficient market segments and targets managers with differentiated skill sets in the US, Western Europe and emerging private equity markets.
“We are investors, not capital allocators,” says Tom Dorr, CIO and Head of the AIP Private Equity Fund of Funds Team. “Fundamentally, we are value oriented and highly opportunistic. We cast a wide net to find new opportunities where managers have a demonstrable competitive advantage relative to their peer set.”
